How Gatsby Investment is Offering Short-Term Investments with 20%+ returns

With interest rates on the rise, and economic uncertainty creating a sense of unease in the marketplace, today’s real estate investors are looking for more flexibility in their investment portfolios. They want short-term investment options that allow for greater liquidity and strong returns.

While traditional real estate investments force investors to choose between either short timeframes or solid yields, Gatsby Investment has found a way to offer both. And Gatsby has created a system to bring these short-term, high-yield investments to investors.

Gatsby’s Formula for Short-Term Real Estate Investment Success

Gatsby Investment has a simple, but highly effective formula for creating successful short-term real estate investments: Combine unique market niches with innovative investment models under the oversight of an experienced team of developers. 

Gatsby has chosen to specialize in the dynamic Los Angeles real estate market, which is primed to provide unmatched real estate investment opportunities for several reasons. First, LA’s high demand by both buyers and renters drives real estate appreciation and year-over-year rent increases. Secondly, the high purchase prices naturally create a barrier to entry and reduce competition from other investors. And finally, changes to local zoning laws have created a historic opportunity for those who have the skill, knowledge, and resources to capitalize on it.

As Dan Gatsby, the Founder and CEO of Gatsby Investments, notes, “We are uniquely positioned to capitalize on the nuances of the LA market. We have a team of expert real estate analysts to read changing market conditions and evaluate potential deals. And, by partnering with award-winning architects, builders, and designers, we can efficiently develop top-quality properties.” Plus, because of the volume of deals completed, Gatsby is able to negotiate lower prices, quicker closings, and faster builds than individual investors.

Gatsby has two distinct short-term investment models to explore: single-family flips and multi-family developments.

Gatsby’s Single-Family Flip Model

Gatsby’s team of expert real estate analysts has found a way to make home flips exceedingly profitable. The secret to Gatsby’s success in single-family flips is to include an accessory dwelling unit (ADU) in each renovation plan.

Over the last several years, California lawmakers have been addressing the housing shortage caused by high demand. A series of laws was enacted in 2017 to allow additional dwellings to be built on single-family lots. So we can add substantial value by building a new ADU from the ground up, in addition to fully remodeling the primary structure.

Properties with ADUs are in high demand because they provide multiple opportunities for buyers. Some buyers want to purchase a property with an ADU so that they can live in the main house and use the ADU as a guest house, mother-in-law suite, or starter apartment for grown kids. Others choose to rent out the second unit to create passive income. And some buyers are real estate investors who want to rent out both dwellings to earn multiple rental income streams from a single property.

Gatsby’s professionals are able to complete a flip in just six to 12 months. And by tailoring builds to meet the needs of today’s buyers, most flips sell within 30 days of completion. This allows investors to get in and out of a deal quickly, which enables them to join Gatsby for subsequent deals.

Gatsby investor, Reuben S. shows how easy it is to get hooked on Gatsby’s short-term investment model. “My first investment was 10k in a house flip. I was so pleased [with the results] that I invested 30k into my 2nd investment. And am looking to go into 2 more deals that they just opened.”

If you’re looking for a real estate investment option with high-yield potential, but you want to make sure your capital is freed up by next year, single-home flips with Gatsby are a solid investment option.

Gatsby’s Multi-Family Development Model

Multi-family development offers some of the highest returns available to real estate investors, causing investor interest in LA’s multi-family market to skyrocket.

The downside to traditional multi-family developments is that they can take several years to complete. But, with Gatsby’s established systems and experienced teams, a new multi-family structure can be completed from the ground up in 14 to 20 months. Just two years from now, you could recover your initial investment plus your share of the proceeds from the completed development.

Gatsby has a detailed strategy for maximizing returns and minimizing risk in multi-family developments. It starts by choosing a single-family lot, on which a multi-family structure can be built. This is possible because of recent zoning law changes in Los Angeles; in an effort to ease the housing shortage, the city now allows multi-family homes to be built on specific lots that were once zoned for single-family use.

Gatsby focuses on designing buildings with relatively few units (typically under 10 units). Buildings of this size are easier to permit, faster to build, and in greater demand by buyers. This means a quick sale and limited risk for investors.

The next strategic element in Gatsby’s multi-family development model is to build units that meet the needs of today’s renters. Today’s renters are looking for units that accommodate a co-living lifestyle. Rather than seeking one or two-bedroom apartments (which account for 75% of the current rental inventory in Los Angeles), today’s renters are looking for apartments with three to five bedrooms to house multiple roommates. Gatsby is providing housing solutions for this group of people by building units with more bedrooms, more bathrooms, and open common areas.

Another strategic advantage to multi-family development investments is that multi-family sales prices are based on rental income. Even if home values temporarily dip, rental prices generally remain steady (or may even increase). And buyers use these rental rates to determine the value of the property. This helps ensure high sales prices and high return potential for Gatsby’s multi-family developments.

How Gatsby Can Offer Short-Term, High-Yield Real Estate Investments Starting at $25K

Recreating Gatsby’s short-term, high-yield real estate investing models would require specialized skills, industry knowledge, local connections, and excessive start-up capital. But you can leverage Gatsby’s model to achieve the same results without funding or managing a project yourself.

Gatsby makes these deals accessible to everyday investors by pooling funds from multiple investors to finance a given project. By crowdfunding the deal, Gatsby can offer short-term, high-yield investments starting at just $25,000.

Not only does this make it easier for the everyday investor to access the exclusive Los Angeles real estate market, but it also allows for easy diversification. If you have $100,000 to invest, for example, you can allocate your investment capital across multiple projects to create an instantly diversified real estate portfolio.

Additional Benefits of Investing with Gatsby

By investing with Gatsby, you get to leverage Gatsby’s expertise. Gatsby has developed their systems over years in the LA market to minimize risk and maximize reward. The average annualized net return to investors from 2017-2022 was 24.22%. And every detail of the project will be handled for you, making your short-term gains entirely passive. 

Gatsby also offers a stable ownership structure. Each investor in each given project becomes a member of the LLC that owns the property. This means that you have an ownership stake in the underlying real estate, rather than simply owning a share of the debt, as is common with other crowdfunding platforms.

And each project is offered on a deal-by-deal basis, which gives you full control over which specific properties you choose to invest in. Rather than investing in a fund that includes partial shares of unknown projects, you get to see the exact address of your properties, along with property photos and a detailed breakdown of the financial projections.

With a convenient online platform, you can watch the progress of your real estate investment directly on your investor dashboard from anywhere in the world.

Gatsby makes it easy for everyday investors to invest in the exclusive Los Angeles real estate market. Visit www.gatsbyinvestment.com to learn more.